Purchase applications push higher

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Published Date 1/20/2021

Today's Mortgage Rate Summary

How Rates Move:

Conventional and Government (FHA and VA) lenders set their rates based on the pricing of Mortgage-Backed Securities (MBS) which are traded in real time, all day in the bond market. This means rates or loan fees (mortgage pricing) moves throughout the day, being affected by a variety of economic or political events. When MBS pricing goes up, mortgage rates or pricing generally goes down. When they fall, mortgage pricing goes up.

Rates Currently Trending: Neutral

Rates are moving sideways so far today. The MBS market ended the day unchanged yesterday on low volatility. This caused rates or fees to mostly move sideways.

Today's Rate Forecast: Neutral

Housing: Weekly Mortgage Applications fell by -1.9%. Purchases improved by 3.0% but refinance fell by -5.0%. The January NAHB Housing Market Index was a very robust 83, but that was 3 points lower than December's level.

Geopolitical: Joe Biden officially becomes President at noon today. The markets will pay less attention to the festivities and focus instead on the flurry of Executive Orders and 100 day plan.

Central Bank: The Peoples Bank of China kept its key interest rate at 3.85%. The Bank of Canada kept its key interest rate at 0.25%.

Treasury Dump: We have a 20 year Treasury bond auction at 1:00 pm ET.

Today's Potential Rate Volatility: Low

There isn't any economic data due for release this week that is likely to cause rates to move. As a result, all eyes are on Brexit, ECB, and of course, the trade war with China. Any news on those three fronts can spike volatility and move rates.

Bottom Line:

If you are looking for the risks and benefits of locking your interest rate in today or floating your loan rate, contact your mortgage professional to discuss it with them.

Source: TBWS

All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.

Superior Funding Corporation is a Massachusetts Mortgage Company. Massachusetts Mortgage Lender and Broker License: MC2972, NMLS ID: 2972.